MYANMAR (formely Burma)

Burma was first unified during the 11th century by King

Anawratha. It remained independent until 1287, when Kublai Khan’s
Mongol hordes invaded the country and destroyed the political
order. A second dynasty was established in 1486 but was plagued
by internal disunity, compounded from the mid-16 th century on by
intermittent wars with Siam (now Thailand). A new dynasty was
established in 1752 and the country was united under King
Alaungpaya. Under his and his successor’s rule, Burma repelled
Chinese invasion and came into conflict with the British, who were
vying with the French for dominance in the area.

Burma was annexed to British India during the three Anglo-

Burmese wars between 1824 and 1886. Burma’s last king, Thibaw,
was exiled by the British, and the entire monarchial system was
destroyed. During the colonial era, a large influx of Indians and
Chinese, along with the British, came to control much of the
country’s economy. Burma was separated from India in 1937 and
was granted a constitution which provided a limited measure of self
government. Until independence, however, Burma’s ethnic minorities
were administered under a separate system.

During World War II, the Japanese occupied Burma and granted
a fictitious independence under a puppet regime led by anti-British
nationalists. These Burmese nationalists later turned against the
Japanese and aided the Allied forces in retaking the country.
Probably no other Southeast Asian country suffered such
devastation during the war as did Burma.

A coalition of nationalist forces, the Anti-Fascist People’s

Freedom League (AFPFL), emerged as the principal political
organization following the Japanese defeat in 1945 and the
restoration of British authority. Under AFPFL leadership, the various
groups and regions within British Burma eventually joined to form
the Union of Burma, which on January 4, 1948, became fully
independent nation outside the Commonwealth of Nations.

During the first decade of independence, the Burmese

government was controlled by the AFPFL, headed by Prime Minister
U Nu who had become President of that organization following the
assassination in 1947 of Burma’s great wartime and post war hero,
Gen. Aung San. The new government carried on the tradition of
parliamentary democracy inherited from the British and dedicated
itself to the creation of a Socialist welfare state.

It showed vigor during the early years of independence by

successfully consolidating its power and holding the union together
in the face of revolts by Communists and other dissident groups as
well as a separatist movement among its many ethnic minorities. In
1958, the AFPFL split, however, precipitating a political crisis which
led to an army takeover in September of that year led by the Chief of
Staff Gen. Ne Win. Preserving constitutional forms, Gen. Ne Win
setup a “caretaker” government with himself as Prime Minister and
with the limited objective of restoring order and stability necessary
for new elections. U Nu and his faction of the AFPFL, renamed the
Union Party, won an overwhelmingly majority in elections held in
early 1960 and took office in April of that year.

Despite popular backing, the U Nu government proved

ineffective and indecisive in coping with the growing problems of
internal security, national unity, and economic development. Its
difficulties were compounded by factional dissension within the
Union Party similar to that which had split the AFPFL in 1958. U Nu’s
decision to move toward a federal system placate the minorities to
provoke fear of the union’s dismemberment. These factors caused
Gen. Ne Win to intervene again. He deposed the U Nu government in
a coup in March 1962, set aside the constitution, and established a
new revolutionary government.

Twelve years later, on March 2, 1974, a new constitutionally

elected, single-party system of government was installed. U Ne Win
assumed the presidency with mainly the same group of military
officers in control. Requirements that military officers in civilian
positions resign their commissions have reduced the military
appearance of the

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government structure. Candidates for top positions are recruited
frequently from the military, however, in general, the military plays a
key role in Burma’s power structure.

In August 1981, U Ne Win announced his retirement from the

presidency, effective in November 1981 upon election of his
successor, U San Yu, by the Council of State. However, as Chairman
of the Central Executive Committee of the Burma Socialists
Programme Party (BSPP), U Ne Win is expected to continue his
influence on Burma’s politics.
Since Burma became independent on Jan. 4, 1948. In 1962,
left-wing general Ne Win staged a coup, banned political opposition,
suspended the constitution, and introduced the “Burmese way of
socialism.” After 25 years of economic hardship and repression, the
Burmese people held massive demonstrations in 1987 and 1988.
These were brutally quashed by the State Law and Order Council
(SLORC). In 1989, the military government officially changed the
name of the country to Myanmar. (The U.S. State Department does
not recognize the name Myanmar or the military regime that
represents it.)

In May 1990 elections, the opposition National League for

Democracy (NLD) won in a landslide. But the military, or SLORC,
refused to recognize the election results. The leader of the
opposition, Aung San Suu Kyi, was awarded the Nobel Peace Prize in
1991, which focused world attention on SLORC's repressive policies.
Daughter of the assassinated general Aung San, who was revered as
the father of Burmese independence, Suu Kyi remained under house
arrest from 1989 until 1995. Suu Kyi continued to protest against the
government, but almost every move she made was answered with a
counterblow from SLORC.

Although the ruling junta has maintained a tight grip on

Myanmar since 1988, it has not been able to subdue an insurgency
in the country's south that has gone on for decades. The ethnic
Karen movement has sought an independent homeland along
Myanmar's southern border with Thailand. In Jan. 2004, the military
government and the insurgents from the Karen National Union
agreed to end the fighting, but they stopped short of signing a
cease-fire.

The economy has been in a state of collapse except for the

junta-controlled heroin trade, the universities have remained closed,
and the AIDS epidemic, unrecognized by the junta, has gripped the
country.

From 2000 to 2002, Suu Kyi was again placed under house
arrest. In spring 2003, the government cracked down once again on
the democracy movement, detaining Suu Kyi and shuttering NLD
headquarters. The regime opened a constitutional convention in May
2004, but many observers doubted its legitimacy.

In October 2004, the government arrested Prime Minister Gen.

Khin Nyunt and charged him with corruption. He had angered the
leadership of the junta with his recent experiments on reform, first
by freeing Suu Kyi from house arrest and later for proposing a
seven-step “road map to democracy.”

A series of coordinated bomb attacks in May 2005 killed about

a dozen people and wounded more than 100 in Rangoon. The
military junta blamed the Karen National Union and the Shan State
Army. The ethnic rebel groups, however, denied any involvement.

On November 13, 2005, the military junta—in a massive and

secretive move—relocated the seat of government from the capital
Rangoon to a mountain compound called Pyinmanaa. The move
perplexed many, and the junta was vague in its explanation, saying,
“Due to changed circumstances, where Myanmar is trying to develop
a modern nation, a more centrally located government seat has
become a necessity.”

More than 1,000 delegates gathered in December to begin

drafting a constitution, which the junta said was a step toward
democracy. The convention adjourned in late January 2006 with little
progress. Officials said it would resume by the end of the year.

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THE BURMESE WAY TO SOCIALISM

Since independence, Burmese economic policies have been

based consistently to some extent on Socialist ideas and the
preservation of traditional Buddhist values. Socialism in Burma had
its strongest roots in Burmese nationalist opposition to British
colonial economic policy, which effectively handed the country’s
industry, finance and trade, over the British and ethnic Indian and
Chinese entrepreneurs. An early goal of Burma’s leaders was to
reduce the economic power of these elements through
nationalization.

Ne Win’s accession to power in 1962 revived and intensified

the nationalization program. Steps taken in 1963 and 1964 included:
nationalization of all foreign and private banks, imposition of steep
tax rates on private businesses and the nationalization of all foreign
trade. By the end of 1965, the government had taken control of all
important industries and domestic trade. Several other hundred
commercial and industrial enterprises were taken over by the
government in late 1968 and early 1969. Although agriculture was
not nationalized, government controls were imposed on processing
and marketing of agricultural products. Government procurement at
official prices of rice and several other key commodities is carried
out for export and for domestic resale through official outlets. One
direct result of the nationalization program has been the
repatriation of many thousands of Indians and Chinese.

Economic policy after 1962 also emphasized self-reliant

development and industrialization. Most foreign aid program in
Burma were toppled. Imposition of centralized economic control
complemented nationalization.

FOREIGN RELATIONS

Strict neutralism has been the cornerstone of Burmese foreign

policy under all governments since 1948. The Burmese consider that
such a policy walls for avoiding international commitments, except
through international organizations, and an impartial approach to
issues between major powers.

SOCIALIST REPUBLIC OF THE UNION OF MYANMAR (Yangon)

Ethnic Groups: Burman 72%, Karen 7%, Shan 6%, Indian 6%,
Chinese 3%
Religions: Buddhist 85%, Animists, Christians and others 15%
Languages: Burmese and ethnic languages
Type of Govt: Socialist Republic
Head of State: Senior Gen. Than Shwe (1992)
Prime Minister: Lt. Gen. Soe Win (2004)
Constitution: January 4, 1974
Independence: January 4, 1948
Currency: KYAT